Premier League clubs shrugged off the coronavirus crisis to splash out £1.2 billion ($1.6 billion) in the summer transfer window but reality is expected to bite in a depressed market this month.

Since the last window closed in early October, hopes for a large-scale return of fans have been dashed by soaring infection rates across England, which have led to another national lockdown.

Football is feeling the strain. Forty positive Covid-19 cases were discovered over two rounds of Premier League testing in late December and early January, with three matches postponed.

This led to fears that another season could be interrupted by the pandemic, with clubs taking a fresh financial hit, even if Premier League bosses insist the season will continue.

"It's not the best situation for the whole planet, so why should it be for a football club," Liverpool manager Jurgen Klopp said on Thursday.

Other potential revenue streams have also dried up. A plan to televise matches on pay-per-view to mitigate the loss of matchday income was quickly dropped after a supporter backlash.

<h2>- Buyer's market -</h2>

Clubs on the continent were far more cautious in the summer window, with La Liga and Bundesliga clubs even running at a transfer surplus.

Premier League clubs found they were unable to offload players for the fees they had hoped for. The net spend of around £800 million was the second-highest on record in a single window and could have consequences for the market over the next month.

January tends to be a seller's market, with buyers panicked into improving their squads after a disappointing start to the season.

However, this time around a number of the biggest Premier League clubs, including Arsenal, Chelsea, Manchester United and Tottenham, are desperate to offload players to trim bloated squads and cut wage bills.

United and Spurs have already posted major losses from the 2018/19 season, when stadiums were open for two-thirds of the season.

Tottenham expect to lose £150 million in revenue for the 2020/21 season alone due to the impact of the pandemic on matchday income and the cancellation of events such as NFL games and concerts.

Chelsea's £32.5 million profit for last season came in a campaign when they were serving a transfer ban and they benefited from £150 million of sales, with the departures of Eden Hazard and Alvaro Morata.

The £220 million the Blues spent in the summer is not reflected in those figures and sales are the priority over signings at Stamford Bridge despite a run of one win in six league games.

<h2>- Brexit effect -</h2>

The impact of Covid-19 is not the only factor limiting clubs' options this month, with new Brexit rules on work permits for European Union nationals coming into force on January 1.

West Brom boss Sam Allardyce was the first top-flight manager to express his frustration at the new rules, with three of his transfer targets ruled out because they would not pass the new points-based system.

Points will be awarded for senior and youth international appearances, club appearances and the pedigree of the selling club.

Major signings should not have any trouble fulfilling the criteria but the new system will have a radical impact on clubs' ability to recruit young players from Europe.

Britain no longer benefits from an exception to FIFA's rules that allows youth players to sign for clubs in another EU state, under which Cesc Fabregas and Paul Pogba first came to England.

<h2>- Liverpool to make a move? -</h2>

Just 10 points separate leaders Liverpool from Leeds in 12th in the most wide open title race for many years.

Manchester United and Manchester City would overtake the champions at the top if they win their games in hand.

Klopp admitted in normal circumstances he would definitely be in the market for a centre-back this month after losing Virgil van Dijk and Joe Gomez for the rest of the season and with Joel Matip also currently sidelined.

However, the economic impact of empty stadiums may force him to make do with a defence patched up by midfielders Fabinho and Jordan Henderson playing out of position.

"You have three senior centre-halves all injured - is that a situation where usually we would do something? Yes, definitely, but we are not in that situation so I don't know if something will happen or not," Klopp added.

"We have to deal with the situation like we did it so far and we have to get through this."

Premier League clubs shrugged off the coronavirus crisis to splash out £1.2 billion ($1.6 billion) in the summer transfer window but reality is expected to bite in a depressed market this month.

Premier League clubs shrugged off the coronavirus crisis to splash out £1.2 billion ($1.6 billion) in the summer transfer window but reality is expected to bite in a depressed market this month. Since the last window closed in early October, hopes for a large-scale return of fans have been dashed by soaring infection rates across England, which have led to another national lockdown. Football is feeling the strain. Forty positive Covid-19 cases were discovered over two rounds of Premier League testing in late December and early January, with three matches postponed. This led to fears that another season could be interrupted by the pandemic, with clubs taking a fresh financial hit, even if Premier League bosses insist the season will continue. "It's not the best situation for the whole planet, so why should it be for a football club," Liverpool manager Jurgen Klopp said on Thursday. Other potential revenue streams have also dried up. A plan to televise matches on pay-per-view to mitigate the loss of matchday income was quickly dropped after a supporter backlash. - Buyer's market - Clubs on the continent were far more cautious in the summer window, with La Liga and Bundesliga clubs even running at a transfer surplus. Premier League clubs found they were unable to offload players for the fees they had hoped for. The net spend of around £800 million was the second-highest on record in a single window and could have consequences for the market over the next month. January tends to be a seller's market, with buyers panicked into improving their squads after a disappointing start to the season. However, this time around a number of the biggest Premier League clubs, including Arsenal, Chelsea, Manchester United and Tottenham, are desperate to offload players to trim bloated squads and cut wage bills. United and Spurs have already posted major losses from the 2018/19 season, when stadiums were open for two-thirds of the season. Tottenham expect to lose £150 million in revenue for the 2020/21 season alone due to the impact of the pandemic on matchday income and the cancellation of events such as NFL games and concerts. Chelsea's £32.5 million profit for last season came in a campaign when they were serving a transfer ban and they benefited from £150 million of sales, with the departures of Eden Hazard and Alvaro Morata. The £220 million the Blues spent in the summer is not reflected in those figures and sales are the priority over signings at Stamford Bridge despite a run of one win in six league games. - Brexit effect - The impact of Covid-19 is not the only factor limiting clubs' options this month, with new Brexit rules on work permits for European Union nationals coming into force on January 1. West Brom boss Sam Allardyce was the first top-flight manager to express his frustration at the new rules, with three of his transfer targets ruled out because they would not pass the new points-based system. Points will be awarded for senior and youth international appearances, club appearances and the pedigree of the selling club. Major signings should not have any trouble fulfilling the criteria but the new system will have a radical impact on clubs' ability to recruit young players from Europe. Britain no longer benefits from an exception to FIFA's rules that allows youth players to sign for clubs in another EU state, under which Cesc Fabregas and Paul Pogba first came to England. - Liverpool to make a move? - Just 10 points separate leaders Liverpool from Leeds in 12th in the most wide open title race for many years. Manchester United and Manchester City would overtake the champions at the top if they win their games in hand. Klopp admitted in normal circumstances he would definitely be in the market for a centre-back this month after losing Virgil van Dijk and Joe Gomez for the rest of the season and with Joel Matip also currently sidelined. However, the economic impact of empty stadiums may force him to make do with a defence patched up by midfielders Fabinho and Jordan Henderson playing out of position. "You have three senior centre-halves all injured - is that a situation where usually we would do something? Yes, definitely, but we are not in that situation so I don't know if something will happen or not," Klopp added. "We have to deal with the situation like we did it so far and we have to get through this."

Coronavirus, Brexit tame Premier League spending

Just five months after <a href="https://www.wionews.com/topics/premier-league">Premier League</a> clubs consulted their players about taking a 30 percent wage cut, the English top-flight is again blowing Europe's other top leagues out the water when it comes to splashing the cash.

A return to the routine spending of tens of millions of pounds on players jars with the bleak forecasts often presented by the clubs themselves as a result of the coronavirus pandemic.

At the height of the pandemic, Liverpool and Tottenham planned to&nbsp;use government money to pay non-playing staff, only to back down in the face of public anger, while Arsenal announced proposals to cut 55 jobs just last month.

If Premier League clubs require a reminder that Covid-19 remains a threat, they need only look to the empty stands that will accompany the start of the new season from Saturday.

Gate receipts may only account for 13 percent of the Premier League's revenue, according to figures from UEFA's latest benchmarking report, but the other major streams of income such as television rights and commercial sponsorships are also not immune to the crisis.

A rebate worth a reported £330 million ($429 million, 363 million euros) was due to domestic and international broadcasters because the 2019/20 season was not completed on time after a three-month stoppage to the campaign.

Last week the Premier League announced its deal with Chinese streaming platform PPTV, understood to be worth about $700 million, had been cancelled, with political tensions between Britain and China potentially making a new contract difficult to negotiate.

European Club Association chairman Andrea Agnelli said on Tuesday that rebates owed to Champions League and Europa League broadcasters totalled 575 million euros, warning football was in "crisis-management" mode.

Agnelli, who is also the chairman of Italian champions Juventus, said the overall value of the transfer market could plummet by up to one third.

<h2>- Big-spending Chelsea -</h2>

Yet no such downturn has been noticeable among Premier League clubs.

Chelsea have led the way with a £200 million rebuild, signing Kai Havertz, Timo Werner, Hakim Ziyech and Ben Chilwell.

Manchester City have spent more than £60 million on two players in Nathan Ake and Ferran Torres who will struggle to start in Pep Guardiola's strongest XI, while Donny van de Beek could end up costing Manchester United&nbsp;around £40 million.&nbsp;

Even more striking are the sums spent by non-Champions League clubs.

Wolves broke their transfer record on a 40-million-euro capture, Portuguese teenager Fabio Silva, who had scored three goals and started one league match for Porto.

After spells together at Real Madrid and Bayern Munich, James Rodriguez and Carlo Ancelotti have been reunited at Everton, who have also signed midfielders Allan and Abdoulaye Doucoure. The outlay for the three players is around £64 million.&nbsp;

Leeds announced their return to the Premier League by signing Spanish international Rodrigo and Germany's Robin Koch.&nbsp;

Newcastle, Crystal Palace and Leicester are also among those to have spent around £20 million on a single signing.

By contrast, even giants across Europe such as Real Madrid, Barcelona and Juventus are selling and seeking to cut wage costs.

The Premier League's lavish spending is due to a number of factors. Chelsea are making up for lost time after a transfer ban last summer, while they are also among the clubs seeking to make the most of a buyer's market.

For others such as Everton, the relaxation of financial fair play rules gives wealthy owners more opportunity to back their clubs.

The Premier League's TV deals worth around £3 billion a season are an even bigger economic advantage at a time when matchday and commercial revenue are shrinking.

But the rebates show how hundreds of millions can be wiped out, with the coronavirus threatening more disruption in the coming season.

Should a lack of caution in the transfer window come back to hurt Premier League clubs, there will be little sympathy shown from across the continent.

Just five months after Premier League clubs consulted their players about taking a 30 percent wage cut, the English top-flight is again blowing Europe's other top leagues out the water when it comes to splashing the cash.

Just five months after Premier League clubs consulted their players about taking a 30 percent wage cut, the English top-flight is again blowing Europe's other top leagues out the water when it comes to splashing the cash. A return to the routine spending of tens of millions of pounds on players jars with the bleak forecasts often presented by the clubs themselves as a result of the coronavirus pandemic. At the height of the pandemic, Liverpool and Tottenham planned to use government money to pay non-playing staff, only to back down in the face of public anger, while Arsenal announced proposals to cut 55 jobs just last month. If Premier League clubs require a reminder that Covid-19 remains a threat, they need only look to the empty stands that will accompany the start of the new season from Saturday. Gate receipts may only account for 13 percent of the Premier League's revenue, according to figures from UEFA's latest benchmarking report, but the other major streams of income such as television rights and commercial sponsorships are also not immune to the crisis. A rebate worth a reported £330 million ($429 million, 363 million euros) was due to domestic and international broadcasters because the 2019/20 season was not completed on time after a three-month stoppage to the campaign. Last week the Premier League announced its deal with Chinese streaming platform PPTV, understood to be worth about $700 million, had been cancelled, with political tensions between Britain and China potentially making a new contract difficult to negotiate. European Club Association chairman Andrea Agnelli said on Tuesday that rebates owed to Champions League and Europa League broadcasters totalled 575 million euros, warning football was in "crisis-management" mode. Agnelli, who is also the chairman of Italian champions Juventus, said the overall value of the transfer market could plummet by up to one third. - Big-spending Chelsea - Yet no such downturn has been noticeable among Premier League clubs. Chelsea have led the way with a £200 million rebuild, signing Kai Havertz, Timo Werner, Hakim Ziyech and Ben Chilwell. Manchester City have spent more than £60 million on two players in Nathan Ake and Ferran Torres who will struggle to start in Pep Guardiola's strongest XI, while Donny van de Beek could end up costing Manchester United around £40 million. Even more striking are the sums spent by non-Champions League clubs. Wolves broke their transfer record on a 40-million-euro capture, Portuguese teenager Fabio Silva, who had scored three goals and started one league match for Porto. After spells together at Real Madrid and Bayern Munich, James Rodriguez and Carlo Ancelotti have been reunited at Everton, who have also signed midfielders Allan and Abdoulaye Doucoure. The outlay for the three players is around £64 million. Leeds announced their return to the Premier League by signing Spanish international Rodrigo and Germany's Robin Koch. Newcastle, Crystal Palace and Leicester are also among those to have spent around £20 million on a single signing. By contrast, even giants across Europe such as Real Madrid, Barcelona and Juventus are selling and seeking to cut wage costs. The Premier League's lavish spending is due to a number of factors. Chelsea are making up for lost time after a transfer ban last summer, while they are also among the clubs seeking to make the most of a buyer's market. For others such as Everton, the relaxation of financial fair play rules gives wealthy owners more opportunity to back their clubs. The Premier League's TV deals worth around £3 billion a season are an even bigger economic advantage at a time when matchday and commercial revenue are shrinking. But the rebates show how hundreds of millions can be wiped out, with the coronavirus threatening more disruption in the coming season. Should a lack of caution in the transfer window come back to hurt Premier League clubs, there will be little sympathy shown from across the continent.

Premier League clubs forget coronavirus crisis in transfer splurge

The financial squeeze put on Premier League clubs by the coronavirus crisis could be felt across the continent in the coming months as the well to fund massive transfer fees runs dry.

For each of the past four summers, Premier League clubs have flexed their financial muscle to splurge over £1 billion ($1.3 billion) on transfers.

That has helped spread the wealth of television contracts worth billions across Europe and crucially down the divisions to cash-strapped clubs in England.

Now even the world's richest league is facing economic meltdown.

Premier League matches have been suspended indefinitely with no return expected before mid-June at the earliest.

Broadcasters could be due a rebate worth a reported £762 million if the season is not completed and, even when the games do recommence, they are likely to be behind closed doors, quashing income from gate receipts.

Moreover, a number of major sponsors such as airlines and gambling companies have been just as badly hit by the COVID-19 shutdown, which is expected to lead to a curb on commercial revenue.

Rather than the usual arms race for talent, Premier League clubs are fretting about just meeting their wage bills for the next few months.

"Many clubs could be threatened by insolvency and transfer plans came to a standstill for most clubs because of the many uncertainties," said Matthias Seidel, founder of Transfermarkt, a website specialising in transfer values.

According to Transfermarkt, 1.8 billion euros ($2 billion) has already been wiped off the value of Premier League squads.

"There's no doubt the actual value of players right now has gone down in all squads," said Brighton owner Tony Bloom.

"How much less, I have no idea. It depends on how the next few months play out."

<h2>- 'Vultures and predators' -</h2>

Such uncertainty has led for calls to do away with transfers entirely to avoid the unseemly sight of clubs, who have asked staff to take pay cuts and in some cases relied on government money, spending money on new players.

"If you're trying to get 30 percent pay cuts from existing players, you may have to put a transfer embargo in place," former Manchester United captain Gary Neville told Sky Sports.

However, embargoes may only accelerate fears that clubs lower down the pyramid will not survive the crisis.

Proceeds from transfer sales are commonly used in the lower leagues to cover running costs and will be needed even more without the regular income of gate receipts to rely on.

"I think there will be significant transfer fee deflation," football finance expert Kieran Maguire told AFP.

"There will be a significant number of clubs that when some form of transfer market returns, they will be close to going out of business and therefore will accept fire sale prices.

"The vultures and predators will pick off good players for very modest fees."

The fear for those reliant on transfer fees, though, is that the damage has already been done.

Given the vast sums involved, transfer fees are very commonly paid over the course of a player's contract.

Based on accounts published to the end of the 2018/19 season, Premier League clubs owed £1.6 billion in outstanding transfer payments, £900 million of which was to foreign clubs.

Maguire warns of the domino effect whereby if one club fails to meet its transfer debt, it could spark a series of defaulted payments on other deals or even worse force clubs into insolvency.

"The concern is that financial problems in one league could spread throughout the industry just like the pandemic," he said.

Bundesliga chief executive Christian Seifert told the New York Times earlier this month that the transfer market will "collapse" and that "some leagues will understand that money is nothing that is coming automatically every month from heaven."

That may have been a slight on the Premier League's overindulgence on transfer fees.

But as the biggest spender, the economic earthquake felt by English football will ripple across Europe for some time to come.

The financial squeeze put on Premier League clubs by the coronavirus crisis could be felt across the continent in the coming months as the well to fund massive transfer fees runs dry.

The financial squeeze put on Premier League clubs by the coronavirus crisis could be felt across the continent in the coming months as the well to fund massive transfer fees runs dry. For each of the past four summers, Premier League clubs have flexed their financial muscle to splurge over £1 billion ($1.3 billion) on transfers. That has helped spread the wealth of television contracts worth billions across Europe and crucially down the divisions to cash-strapped clubs in England. Now even the world's richest league is facing economic meltdown. Premier League matches have been suspended indefinitely with no return expected before mid-June at the earliest. Broadcasters could be due a rebate worth a reported £762 million if the season is not completed and, even when the games do recommence, they are likely to be behind closed doors, quashing income from gate receipts. Moreover, a number of major sponsors such as airlines and gambling companies have been just as badly hit by the COVID-19 shutdown, which is expected to lead to a curb on commercial revenue. Rather than the usual arms race for talent, Premier League clubs are fretting about just meeting their wage bills for the next few months. "Many clubs could be threatened by insolvency and transfer plans came to a standstill for most clubs because of the many uncertainties," said Matthias Seidel, founder of Transfermarkt, a website specialising in transfer values. According to Transfermarkt, 1.8 billion euros ($2 billion) has already been wiped off the value of Premier League squads. "There's no doubt the actual value of players right now has gone down in all squads," said Brighton owner Tony Bloom. "How much less, I have no idea. It depends on how the next few months play out." - 'Vultures and predators' - Such uncertainty has led for calls to do away with transfers entirely to avoid the unseemly sight of clubs, who have asked staff to take pay cuts and in some cases relied on government money, spending money on new players. "If you're trying to get 30 percent pay cuts from existing players, you may have to put a transfer embargo in place," former Manchester United captain Gary Neville told Sky Sports. However, embargoes may only accelerate fears that clubs lower down the pyramid will not survive the crisis. Proceeds from transfer sales are commonly used in the lower leagues to cover running costs and will be needed even more without the regular income of gate receipts to rely on. "I think there will be significant transfer fee deflation," football finance expert Kieran Maguire told AFP. "There will be a significant number of clubs that when some form of transfer market returns, they will be close to going out of business and therefore will accept fire sale prices. "The vultures and predators will pick off good players for very modest fees." The fear for those reliant on transfer fees, though, is that the damage has already been done. Given the vast sums involved, transfer fees are very commonly paid over the course of a player's contract. Based on accounts published to the end of the 2018/19 season, Premier League clubs owed £1.6 billion in outstanding transfer payments, £900 million of which was to foreign clubs. Maguire warns of the domino effect whereby if one club fails to meet its transfer debt, it could spark a series of defaulted payments on other deals or even worse force clubs into insolvency. "The concern is that financial problems in one league could spread throughout the industry just like the pandemic," he said. Bundesliga chief executive Christian Seifert told the New York Times earlier this month that the transfer market will "collapse" and that "some leagues will understand that money is nothing that is coming automatically every month from heaven." That may have been a slight on the Premier League's overindulgence on transfer fees. But as the biggest spender, the economic earthquake felt by English football will ripple across Europe for some time to come.

Premier League's transfer market bubble set to burst